Embodiments of the present invention are directed to systems, apparatuses and methods for using prepaid cards or other portable consumer payment devices to make payments for goods or services, and more specifically, to a method of providing funds to recharge or load a prepaid card, payroll card, token, or other consumer payment device. Embodiments of the invention allow a consumer to use a source other than their employer (or if the payment device was not issued by their employer, other than the original issuer of the card or payment device) to provide funds that may be accessed using the card, token, or other form of payment device. Embodiments of the invention may be used to provide a mechanism for the funding of a prepaid card, payroll card, or other form of payment device (or account associated with a consumer payment device) using a variety of alternate sources, including, but not limited to, a card loading network, money transfers, a cardholders checking account, etc.
A popular form of consumer payment device is a prepaid card or similar device that is “loaded” with a predetermined amount of money or linked to an account with a predetermined amount of money. The money may be used to provide payment for goods or services by presenting the card or payment device to a merchant. A typical form of prepaid card is a payroll card issued by an employer to an employee. In some cases, the employee may not have access to other banking services, and may use the card to pay for goods or services. Even if the employee does have access to banking services, the card provides a convenient way for an employer to provide salary or benefits payments to an employee. In the case of a payroll card, the card is typically loaded by the employer with funds based on the employee's paycheck or benefits. In such a situation, the payroll card functions in a similar manner to a debit card that is loaded with an amount of money corresponding to the employee's paycheck or benefits.
However, an employee may wish to provide other sources of funds for loading or for adding to the available balance of a prepaid card, payroll card, or other form of portable consumer payment device. For example, an employee may wish for a third party to be able to provide funds that can be accessed using the prepaid or payroll card. The employee may also wish to be able to transfer funds from another of the employee's accounts (such as a checking, savings, or credit card account) to the prepaid or payroll card. These are examples of ways in which the ability to reload a portable consumer payment device with funding from other sources would provide an employee with access to additional funds beyond those provided by an employer. Unfortunately, at present this capability is not provided by employers or issuers of prepaid cards (or other forms of consumer payment devices). One reason why such a capability is not presently provided is that there is no process or mechanism in place to reduce the risk of fraud in the use of alternate sources of funding.
What is desired are a system, apparatuses and methods for providing a consumer with the ability to charge or load a prepaid card, such as a payroll card, or another form of consumer payment device with money from a source of funding other than an employer. It is also desired to provide a card issuer, payment device issuer, or payment processor with a method of enabling use of such alternate funding sources that does not expose the issuer or payment processor to fraudulent attempts to utilize the alternate sources of funding. Embodiments of the invention address these problems and other problems individually and collectively.